The South East Asia Iron and Steel Institute (SEAISI) said today, October 28, that the ASEAN (Association of Southeast Asian Nations) region is a significant net importer of steel products, pointing out that the region is not self-sufficient in supply, particularly for semi-finished and flat steel products. In view of this imbalance, a number of new/expansion projects are in the pipeline to cater for the shortfalls in supply, the institute said, while it went on to provide details regarding some of the new/expansion projects that have been commissioned or that are expected to come on stream in 2013:
Vietnam
Vietnam has the largest number of new projects in the region. The most significant project to come on stream in the country in 2013 is China Steel Sumikin Vietnam Joint Stock Company which started operations in October this year. The company has a total production capacity of 1.2 million metric tons, including 200,000 mt capacity per year for hot rolled coil pickled and oiled (HRC P&O), 500,000 mt capacity per year for cold rolling, 300,000 mt capacity per year for coated steel and 200,000 mt capacity per year for electrical sheet.
A domestic company, Hoa Phat Group in September this year commissioned its new integrated steel plant with a 450 m3 blast furnace and 450,000 mt of rolling capacity to produce rebar and wire rod.
In September this year, another local company, Thai Trung Steel Company, commissioned its new rolling mill for long poducts with capacity of 500,000 mt per year.
Other local companies that have commissioned or are expected to commission their new projects in 2013 are:
Hung Tuong's rolling mill with capacity of 250,000 mt per year.Dong A Steel Sheet Company's new capacity expansion of 200,000 mt per year for cold rolled coil (CRC) in the province of Binhduong.Hoa Sen Steel Sheet Group's new colour coated line with an annual capacity of 120,000 mt.Viet Trung is expected to commission its 550 m3 blast furnace plant with a 500,000 mt annual billet capacity by the end of 2013Hoabinh Stainless Steel Company is investing in a 100,000 mt capacity stainless CRC mill in the province of Hung Yen, with commissioning expected by the end of 2013.
Malaysia
Eastern Steel Sdn Bhd, a joint venture company between Hiap Teck Venture Berhad of Malaysia and Shougang Group of China, was originally scheduled to complete the first phase of its project with an initial annual production capacity of 700,000 mt of steel slab in 2013. However, the new plant is now likely to start operation in the first quarter of 2014.
Indonesia
Indonesia's mega steel project is PT Krakatau POSCO, a joint venture between PT Krakatau Steel, a state-owned company, and POSCO of Korea. The first phase of the project is expected to be completed in December 2013 and will produce steel slab and plate with an annual production capacity of three million mt.
Philippines
Steel Asia Manufacturing Corporation, the largest steel company in Philippines, is expected to start its new 500,000 mt per year capacity rebar rolling mill at Davao by the end of 2013.
Thailand
Two Japanese-owned companies have commissioned new plants in Thailand:
JFE Steel Galvanizing started operations at a 400,000 mt per year continuous galvanizing line in Rayong in April this year.
Nippon Steel & Sumikin Galvanizing commissioned its new 360,000 mt per year hot dip galvanized (HDG) and galvannealed sheet production plant in Rayong in October of the current year.
